Stock market: BSE, NSE shut today on account of Maharashtra Day

Stock exchanges BSE and NSE are shut on Thursday on the occasion of Maharashtra Day to commemorate the formation of the state from the division of the Bombay State on May 1, 1960. Most global markets including mainland China, Hong Kong, Singapore, Taiwan, France, Germany and Malaysia are also closed today for Labor Day. 

In Asia, Japanese benchmark Nikkei 225 was trading 185.12 points, or o.49 per cent, higher at 36,225. This was in line with gains seen on Wall Street overnight. US index Dow Jones Industrial Average settled at 40,669.36 overnight, up 0.4 per cent. S&P 500 finished the session 0.2 per cent higher at 5,569.06. Nasdaq Composite declined 0.1 per cent to 17,446.34.

For India, April was a solid month with Sensex and Nifty gaining 5-5.5 per cent. Vinod Nair, Head of Research at Geojit Investments said the broader market performed well in April, driven by reduced tariff risks, a potential US-India trade deal, and strong FII inflows. 

The momentum though was capped due to rising tensions between India and Pakistan and muted Q4 results. 

"This negative bias is expected to persist in the near term, but the long-term outlook remains positive due to the minimal financial impact from the conflict. Consequently, any market consolidation is likely to be used as an investment opportunity," Nair said.

Emkay Global remained constructive on Indian equities and sees the current run sustaining. It said a majority of the clients concurred with its positive view on India.

"The RBI easing puts India in a more favorable cyclical position, especially as worries around a deep recession in the US abate. This is also resulting in India seeing disproportionate flows vs other emerging markets. Our sectoral calls faced push-back, though. Financials remains the favored sector, though our low-growth argument resonated with some specialists. SMID private banks are seeing interest, to play easy liquidity and the MFI turnaround," it said.

The brokerage said its overweight position on technology found few takers, while staples remained out of most investors’ radar.

"Cement was another favored sector. Finally, autos and discretionary, our top OW, had a mixed response: some investors are bottom-fishing while others are waiting for more concrete evidence of a demand revival," it said.

Ajit Mishra of Religare Broking said NSE benchmark Nifty is currently trading in a consolidation phase, facing resistance near the 24,400 mark. The rotational buying in heavyweight stocks across sectors is cushioning the downside.  

"Looking ahead, markets will take cues from global developments on Friday, particularly US GDP data and corporate earnings. In this context, we continue to recommend a stock-specific trading approach, with a focus on buy-side opportunities," he said.